Annual Report 2010-2011 - Colombo Stock Exchange

Notes to the Financial Statements Contd.
Rentals payable according to the original Lease agreement stipulated that the frozen Average GDP Deflator for the Calendar Years
2002 to 2006 be used to calculate the lease rentals payable and to be reviewed at the time of the expiry of this agreement, in
June 2008. The Regional Plantation Companies were at the negotiation table during the previous financial year as well as the year
under review to continue the same basis for the ensuing periods. Subsequently in their communication with Regional Plantation
Companies in May 2010, Ministry of Plantation Industries stated that the Lease Rentals should be calculated on the GDP Deflator
from 2008/9 as stipulated in the original lease agreement.
This resulted in an arrears in Lease rental payments amounting to Rs. 37.3 mn and Rs. 32.2 mn for Kegalle and Namunukula
Plantations respectively, payable in 12 equal installments
15 Deferred income
Group
2010/2011 2009/2010
Rs. ‘000 Rs. ‘000
Deferred grants and subsidies
At beginning of the year 528,898 478,147
Grants received during the year 78,167 74,259
Amortised during the year (22,302) (23,508)
At end of the year 584,763 528,898
16 Deferred tax liability / (assets)
Group
Company
2010/2011 2009/2010 2010/2011 2009/2010
Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000
At beginning of the year 24,981 21,804 (36,953) (36,953)
Transfer from / (to) income statement (14,392) 3,177 - -
At end of the year 10,589 24,981 (36,953) (36,953)
Deferred tax assets, liabilities related to the following: Group Company
2010/2011 2009/2010 2010/2011 2009/2010
Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000
Deferred tax liabilities
Accelerated depreciation for tax purposes 273,802 303,759 32,402 35,230
273,802 303,759 (32,402) 35,230
Deferred tax assets
Retirement benefit obligations (119,337) (118,693) (13,602) (17,549)
Benefits arising from tax losses (99,434) (114,961) (55,753) (54,634)
Other provisions (44,442) (45,124) - -
(263,213) (278,778) (69,355) (72,183)
Net deferred tax liability / assets 10,589 24,981 (36,953) (36,953)
Deferred tax assets amounting to Rs. 330 mn (2010 Rs. 435 mn) for the group and Rs. 74 mn ( 2010 Rs. 124 mn) for the company
has not recognized since the companies do not expect these assets to reverse in the foreseeable future.
Richard Pieris and Company PLC | Annual Report 2010/2011 90